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Reciprocity Under Brief And Long‐Time Delays

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  • Nickolas Gagnon
  • Charles N. Noussair

Abstract

We report the results from three experiments embedded in the same overarching design, which extends the Gift Exchange paradigm for the study of worker–employer relationships. We focus on the effect of the length of the delay, between the time at which workers learn their wage and when they choose an effort level, on the relationship between wage and effort. We compare effort choices made within a few hours with those made several weeks afterward. We find that the strength of the wage‐effort relationship decreases over time, and this change appears to be driven by workers who receive low wages. (JEL C91, J33, M52)

Suggested Citation

  • Nickolas Gagnon & Charles N. Noussair, 2020. "Reciprocity Under Brief And Long‐Time Delays," Economic Inquiry, Western Economic Association International, vol. 58(3), pages 1517-1530, July.
    • Handle: RePEc:bla:ecinqu:v:58:y:2020:i:3:p:1517-1530
    DOI: 10.1111/ecin.12882
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    More about this item

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods
    • M52 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects

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